CNBC host Jim Cramer is once again warning investors to stay away from crypto assets and Bitcoin (BTC), instead saying they should opt for gold.
In a new update, the host of Mad Money says that the top digital asset by market cap’s latest price bounce hasn’t convinced him of its legitimacy.
“Now that Bitcoin has spent the last couple weeks bouncing off its lows, the whole crypto-industrial complex is back in full gear, trying to entice people back in. I think that would be a huge mistake for you.”
Cramer criticizes Bitcoin’s “legion of cheerleaders” for continuing to support the sector after FTX’s high-profile collapse and the resulting contagion that spread to other prominent crypto firms.
“For years these people told us that Bitcoin was the perfect replacement for gold as an alternative asset. They said it was a great hedge against inflation… while central banks were printing money like crazy, but in reality, it wasn’t a hedge against anything.”
Cramer points to Bitcoin’s high correlation with the Nasdaq 100 Futures chart and argues that BTC is a risk asset, not a type of currency or a stable store of value. He encourages traders who want a hedge against inflation to ignore the Bitcoin maximalists and continue purchasing gold.
BTC is changing hands for $22,678 at time of writing, down 1.16% during the last 24 hours but up 38% from its 30-day low of $16,464.